Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units)

Sales $ 100,000

Variable expenses 65,000

Contribution margin 35,000

Fixed expenses 30,100

Net operating income $ 4,900

1. What is the margin of safety in dollars? What is the margin of safety percentage?

2. What is the degree of operating leverage?

3. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales?

4. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $30,100 and the total fixed expenses are $65,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?

15. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $30,100 and the total fixed expenses are $65,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales?